free Real estate note appraisal
There are many factors that determine what your note is worth in today’s market. They are generally broken down into 4 categories: your documentation, the payment status of your note, the credibility of the borrower and the condition, location, and type of property the note is tied to.
The terms of your note will not only affect the value; LTV, amortization, and interest rate all play a factor on what your note is worth to investors.
If your payor pays on time or extra every month, that will reflect in a higher valuation to you. While slow-paying or non-performing notes can be sold, they will often be deeply discounted to offset the likely risk of default.
The person making payments on the note is a major factor when it comes to your notes value. The amount of cash paid down at closing, the payor's credit score and source of income all play into the pricing of your note.
The property is the security behind the note. A property in good condition will have a higher value. Likewise, specific property types will impact the value. A note secured by a beautiful residential home in a suburb will be worth more than a car shop or mobile home in a rural area.
Why would i sell my note for less than it's current balance?
Real estate notes are usually purchased at a discount from the actual note's balance. A discount is the difference between the outstanding balance of your note and the amount that a note buyer would be willing to pay you now to collect future payments.
It costs money to get all of the future payments in cash today. The size of the discount can be understood by learning more about how investors weigh the following. You can read more information about that here:
#12 Calculating cash value of my note